(1) In the case of section 93 sentence 1, a payment made without the guarantee of replacement or repair is only effective vis-à-vis a mortgage creditor if the insurer or the policyholder has informed him or her that the payment is to be made without the guarantee, and no less than one month has elapsed since receipt of the communication.
(2) If the amount of compensation is not to be utilised to restore or replace the property in accordance with the terms of the contract, the insurer is permitted not to pay with effect vis-à-vis a mortgage creditor until he or she, or the policyholder, has notified the mortgagee of that intention, and no less than one month has elapsed since receipt of the communication.
(3) The mortgage creditor may object to payment vis-à-vis the insurer for a period of one month only. The communications referred to under subsections (1) and (2) may be omitted if they would necessitate an unreasonable amount of time and effort; the time limit in such cases begins on the due date for payment of the amount of compensation.
(4) If the mortgage creditor has notified the insurer of his or her mortgage, a payment made without the guarantee of restoration or replacement only becomes effective vis-à-vis the mortgage creditor if the latter has agreed in writing to effect payment.
(5) Subsections (1) to (4) apply accordingly if the property is burdened with a land charge, annuity land charge, or other charges on land.